Work Order Issuance Procedures

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Questions and Answers

What is the weight assigned to the performance under RIDF?

10%

15% (correct)

20%

Which component contributes the least percentage to the evaluation criteria mentioned?

Performance under RIDF

Utilisation of Drawables (correct)

Inverse of Per Capita PS Credit

Average disbursements

What percentage is allocated to Average Disbursements in the assessment criteria?

15%

20%

10% (correct)

How much does Inverse of Per Capita PS Credit contribute to the total evaluation?

15% Signup and view all the answers

Which of the following statements correctly combines two components of the evaluation?

Inverse of Per Capita PS Credit and Average Disbursements account for 25% combined. Signup and view all the answers

What is the maximum duration for which a request for extension of time can be granted at the level of ROs for projects sanctioned under Tranche XXVI and onwards?

2 months Signup and view all the answers

What must ROs do when considering requests for an extension of time?

Record specific reasons for the request Signup and view all the answers

What action may be taken if sanctioned projects are not grounded within 18 months from the date of the sanction letter?

Consider the projects as deleted/withdrawn with approval Signup and view all the answers

When a request for an extension of time exceeds 3 months, what is the required procedure?

Refer to the Head Office Signup and view all the answers

What format must the details of deleted or withdrawn projects be forwarded to the Head Office?

Prescribed format Signup and view all the answers

What is the role of the Regional Office (RO) regarding project sanctions?

Consider extension requests and delete projects if needed Signup and view all the answers

What is the initial time period for consideration of an extension of time for sanctioned projects?

Up to 2 months Signup and view all the answers

Who must approve the deletion/withdrawal of projects that are not grounded within the stipulated time?

CGM/OIC Signup and view all the answers

What is the maximum cost escalation percentage permitted for projects with a phasing period of more than 02 years?

Up to 10% Signup and view all the answers

Which of the following is NOT a reason for cost escalation that is beyond the control of State Governments?

Natural disasters Signup and view all the answers

What is the role of State Governments regarding cost escalation beyond the in-built provision?

They must meet escalations from their own resources. Signup and view all the answers

What is the limit for considering land acquisition costs due to judicial intervention?

60% of the cost of land acquisition Signup and view all the answers

Which circular addresses the eligibility of cost escalation under RIDF for projects with a phasing duration of over two years?

Circular No. 182/SPD-4/2008 Signup and view all the answers

What is the first step when unexpected cost escalations occur?

Assess if the escalation is covered under in-built provisions. Signup and view all the answers

What document outlines the conditions under which State Governments may seek cost escalation?

Circulars from the relevant authority Signup and view all the answers

Which of the following escalations is considered part of the in-built provision?

Cost included in the updated cost estimation Signup and view all the answers

What is the time frame for issuing a work order after receiving sanction?

9 months Signup and view all the answers

How long does the grounding of a project have to occur after the sanction date?

12 months Signup and view all the answers

What should the State/UT Governments secure prior to or within one month of the in-principle sanction?

Administrative Approval Signup and view all the answers

What challenges are acknowledged regarding the Administrative Approval process?

Practical difficulties Signup and view all the answers

What is the role of the ROs in relation to the State Governments and Administrative Approval?

To impress upon the Governments to obtain approvals Signup and view all the answers

What is the initial expectation regarding Administrative Approval and Technical Sanction before project sanction under RIDF?

They are expected to already be in place. Signup and view all the answers

When can the Administrative Approval be delayed?

When practical difficulties arise Signup and view all the answers

What is the significance of the one month period mentioned in the context of the in-principle sanction?

It is the deadline for securing Administrative Approval. Signup and view all the answers

What is the primary purpose of adopting the project approach?

To ensure proper end use of funds Signup and view all the answers

What key factor must be considered when preparing cost estimates for RIDF projects?

Alignment with the latest Schedule of Rates Signup and view all the answers

Which type of items are eligible for funding under RIDF?

Identifiable capital items Signup and view all the answers

Who receives the checklists for preparing RIDF projects?

State Governments Signup and view all the answers

When were the checklists for RIDF project preparation sent to State Governments?

30 September 2005 Signup and view all the answers

What is a critical step in the preparation of cost estimates for projects?

Ensuring detailed field surveys are conducted Signup and view all the answers

Which type of projects are included in the scope of the RIDF checklists?

Various sectors including agriculture and social sectors Signup and view all the answers

What aspect should be avoided in cost estimation for RIDF projects?

Using outdated market rates Signup and view all the answers

What percentage of the evaluation criteria is assigned to the Utilisation of Drawables component?

5% Signup and view all the answers

Which two components combined contribute a total of 30% to the evaluation criteria?

Average disbursements and Performance under RIDF Signup and view all the answers

If the total evaluation criteria equals 100%, which component has the largest individual contribution?

Performance under RIDF Signup and view all the answers

Which of the following options reflects the combined contribution of Inverse of Per Capita PS Credit and Average Disbursements?

25% Signup and view all the answers

What is the combined percentage allocation for the components related to Performance under RIDF?

15% Signup and view all the answers

What factor influences the interest rates payable to banks concerning deposits with NABARD?

The prevailing Bank Rate at the time of placement Signup and view all the answers

Which statement accurately reflects the relationship between RIDF and Priority Sector Lending?

A shortfall in achieving Priority Sector Lending affects deposit interest rates. Signup and view all the answers

What is most likely a consequence of not grounding sanctioned projects within 18 months?

NABARD may take corrective action regarding the sanction. Signup and view all the answers

Which criterion might NOT be a significant factor in the evaluation of RIDF project approvals?

Historical project success rates of the implementing agency Signup and view all the answers

What is the implication of linking deposit rates to the prevailing Bank Rate?

Interest rates will fluctuate based on external economic conditions. Signup and view all the answers

Which committee is responsible for sanctioning project proposals involving UI loan amounts exceeding Rs. 300 crore?

Sanctioning Committee of the Board Signup and view all the answers

Which members are included in the Sanctioning Committee of the Board?

Chairman NABARD, Deputy Governor of RBI, RBI Board Director Signup and view all the answers

What is the primary function of the Sanctioning Committee as referenced in the content?

Consider project sanction proposals exceeding specific financial limits Signup and view all the answers

Who makes up the representation of the Government of India (GoI) on the NABARD Board?

Finance and Agriculture Ministry Representatives Signup and view all the answers

In which context are the DMoS and annexures submitted by ROs vetted?

After approval from the Competent Authority Signup and view all the answers

Which of the following roles is NOT part of the Sanctioning Committee of the Board?

Director representing the Agriculture Sector Signup and view all the answers

What type of loan proposals does the Sanctioning Committee specifically consider?

Proposals involving UI loans over Rs. 300 crore Signup and view all the answers

Which clause outlines the appointment of Directors on the NABARD Board?

s6(1)(c) of the NABARD Act Signup and view all the answers

Who represents the Government of India on the NABARD Board as per the NABARD Act?

A representative from the Ministry of Rural Development Signup and view all the answers

How many representatives of State Governments are nominated under section 6(1) of the NABARD Act?

Two representatives Signup and view all the answers

What is the minimum quorum required for a meeting of the SCB as specified in the NABARD Act?

3 members, including 2 from specific sections Signup and view all the answers

Which position on the NABARD Board is currently vacant?

Managing Director Signup and view all the answers

Which sections of the NABARD Act outline the nomination process for members?

6(1)(c), 6(1)(d), 6(1)(e) Signup and view all the answers

What percentage of NA can be considered for projects located in declared disaster-affected districts due to calamities?

75% Signup and view all the answers

Which sector cap has been removed, allowing bridge projects to fall within a larger connectivity sector cap?

Rural Connectivity Signup and view all the answers

What is the fixed cap for the Social Sector, excluding Rural Drinking Water Supply, as a percentage of the total allocation?

15% Signup and view all the answers

Which authority is responsible for declaring calamities for project considerations?

Competent Authority of the State Government Signup and view all the answers

What is the time frame within which calamities must have been declared to consider project funding?

Last 3 years Signup and view all the answers

On what basis is the additional relaxation to states determined?

Relevant factors Signup and view all the answers

What specific sub-sector cap related to Bridges has been mentioned in the relaxation?

10% Signup and view all the answers

Which projects fall under the overall connectivity sector cap stipulated for states/regions?

Bridge Projects Signup and view all the answers

Who has the authority to decide on specific cases for project evaluations?

SCB Signup and view all the answers

What does the abbreviation 'UI' in the context of allocation likely stand for?

Utilization Index Signup and view all the answers

Study Notes

Work Order and Project Timeline

Work order issuance must occur within 9 months of sanction date.
Project grounding should take place within 12 months from sanction date.

Administrative Approval

Administrative Approval and Technical Sanction should ideally be secure before project sanction under RIDF.
For practicality, State/UT Governments are encouraged to obtain Approval within one month of in-principle sanction.
Extensions up to 2 months can be granted at the discretion of Regional Offices (ROs) based on specific merits of each case.

Project Deletion and Withdrawal

If projects remain ungrounded (work order not issued) after 18 months from the sanction letter, they may be treated as deleted/withdrawn with CGM/OIC approval.
Details of withdrawn projects should be submitted to the Head Office in a prescribed format.

Performance Metrics

Inverse of Per Capita PS Credit is assessed with a performance benchmark of 15%.
Average disbursements contribute 10% to performance evaluation.
Utilization of Drawables accounts for 5% of the performance metric.

Project Approach Concept

Emphasizes proper fund management, timely project completion, and realization of expected benefits.

Appraisal & Sanction Process

Checklists for RIDF projects in agriculture, irrigation, roads, and social sectors have been provided to State Governments.
Cost estimates should align with the most recent Schedule of Rates, reflecting current market conditions, and must follow detailed field surveys.

Cost Escalation Provisions

Up to 5% cost escalation is permissible for projects phased over two years, and 10% for projects requiring more than two years.
State Governments must cover any additional cost escalation out of their resources, except under certain conditions.

Considerations for Exceptional Cost Escalation

Genuine reasons for cost escalation due to unforeseen changes or judicial interventions in land acquisition may be considered, limited to 60% of the land acquisition cost.

Project Proposals and Sanctioning Committee

Eligible project proposals seeking UI loans exceeding ₹300 crore require approval from the Sanctioning Committee of the Board (SCB) at NABARD.
SCB includes key members: Chairman (NABARD), Deputy Governor (RBI), Director representing RBI, and representatives from Government of India (Finance and Agriculture).
Two representatives from State Governments are also part of the SCB, ensuring a diverse perspective in the decision-making process.
The Managing Director of NABARD is currently vacant, alongside the involvement of Deputy Managing Directors in the committee's operations.
A quorum for SCB meetings requires at least 3 members, with a minimum of 2 from the specific nominee categories mentioned in the NABARD Act.

Loan Disbursement and Allocation

Average disbursements and utilization of drawables are critical metrics; disbursement rate holds a weight of 10%, while drawable utilization accounts for 5%.
Relaxations up to 75% of the norm are available for projects in declared disaster-affected districts due to calamities such as earthquakes or cyclones within the last 3 years.
The cap on social sectors, excluding Rural Drinking Water Supply, is set at 15% of total allocations for any tranche under NABARD.

Interest and Deposit Rates

Rates payable on deposits by banks to NABARD and loans are tied to the prevailing Bank Rate during the time of placement or disbursement.
The interest rates for financial support are influenced by overall achievements in priority sector lending.

Sector-Specific Guidelines

The sub-sectoral cap for Bridges under Rural Connectivity has been lifted, allowing bridge projects to be included within the overall connectivity sector cap for various states and regions.
Social Sector allocations are managed with a set percentage, ensuring essential services receive adequate funding within the broader financial framework established by NABARD.

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Description

This quiz covers the procedures for issuing work orders within a specified timeframe, specifically focusing on the 9-month regulation from the date of sanction. Test your knowledge on the requirements and best practices related to work order management.